It was kind of said at the time that with Sgt. Pepper, the Beatles lost some of the teenybop fan base but gained a wider fan base of listeners in the process. It seems to me that The Beatles were doing a lot in the 1966-67 period which would have led to a decrease in fandom in one area but an overall rise with a more sophisticated and mature audience. So I wouldn't say their popularity was ruined but their fanbase was changing at that time.
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